The Indian equity benchmarks are set to open on lower on Thursday as indicated by the Nifty Futures traded on Singapore Exchange ahead of weekly expiry of index futures and option contracts amid weak global cues. Nifty Futures on Singapore Exchange also known as SGX Nifty Futures fell 0.8 per cent or 140 points to 17,576.
Asian Markets
Asian markets followed their American peers after US Fed’s rate hike and were trading mostly lower with Japan’s Nikkei down 0.98 per cent, Hong Kong’s Hang Seng fell 1.85 per cent and South Korea’s KOSPI dropped 1.37 per cent.
US Markets
Stocks closed lower Wednesday after the Federal Reserve made another big interest rate hike and sharply increased its outlook for how high it expects to raise rates in coming months.
Short-term Treasury yields pushed further into multiyear highs after the central bank raised its benchmark rate by three-quarters of a point. The Fed also said it now expects that rate to be a full percentage point higher by the end of the year than it had predicted in June.
“We have got to get inflation behind us,” Fed Chair Jerome Powell said during a press conference. “I wish there were a painless way to do that. There isn’t.”
The S&P 500 fell 1.7 per cent to its lowest level since mid-July after wavering between gains and losses as traders considered the impact of the Fed’s update on interest rates, which have widespread effects on markets and the economy.
The Dow Jones Industrial Average also fell 1.7 per cent after flipping between gains and losses. The Nasdaq composite lost 1.8 per cent. The major indexes are on pace for their fifth weekly loss in six weeks.
Gold and Crude Oil Price Check
Benchmark U.S. crude oil for November delivery fell $1 to $82.94 a barrel Wednesday. Brent crude for November delivery fell 79 cents to $89.83 a barrel.
Wholesale gasoline for October delivery rose 4 cents to $2.49 a gallon. October heating oil fell 4 cents to $3.33 a gallon. October natural gas rose 6 cents to $7.78 per 1,000 cubic feet.
Gold for December delivery rose $4.60 to $1,675.70 an ounce. Silver for December delivery rose 30 cents to $19.48 an ounce and December copper fell 3 cents to $3.47 a pound.
The dollar fell to 143.46 Japanese yen from 143.68 yen. The euro fell to 99.09 cents from 99.68 cents.
Foreign Flows
Foreign institutional investors sold shares worth Rs 461 crore on Wednesday while domestic institutional investors bought shares worth Rs 538 crore.
Triveni Engineering: Sugar firm Triveni Engineering & Industries Ltd on Wednesday said the company has sold its entire 21.85 per cent stake in Triveni Turbines for about Rs 1,600 crore.
The shares have been sold to Rati Sawhney, one of the promoter of Triveni Turbine, and a few institutional investors, including sovereign wealth funds of Singapore and Abu Dhabi as also a few domestic mutual funds.
In a statement, the company announced "divestment of its entire 21.85 per cent stake in Triveni Turbine Ltd worth Rs 1,609 crore, unlocking significant value for shareholders."
Dodla Dairy: Two entities on Wednesday offloaded dairy company Dodla Dairy Ltd's shares for Rs 106 crore through open market transactions.
According to block deal data available with the National Stock Exchange (NSE), TPG Dodla Dairy Holdings Pte sold 18,31,434 shares while Sunil Reddy Dodla -- one of the promoters of Dodla Dairy -- disposed of 1,95,000 shares of the company.
TPG Dodla sold 3.07 per cent stake while Sunil Dodla offloaded 0.32 per cent holding in the company.
State Bank of India: ublic sector lender State Bank of India on Wednesday said it has raised Rs 4,000 crore by issuing bonds at a coupon rate of 7.57 per cent.
The fund has been raised by issuing Basel III compliant tier II bonds.
Country's largest lender in terms of asset size, deposits and customer base said the bond issue witnessed an overwhelming response from investors, attracting bids worth Rs 9,647 crore, which was oversubscribed by about 5 times against the base issue size of Rs 2,000 crore.
HDFC Bank: HDFC Bank has entered into a long-term partnership with London Stock Exchange group's Refinitiv for digital transformation, new customer acquisition and reduce costs.
Refinitiv is one of the world's largest providers of financial markets data and infrastructure.
The long-term strategic agreement with HDFC Bank, India's largest private sector bank, will support digital transformation and innovation programmes across the whole business in India, said a release on Wednesday.
SpiceJet: Aviation safety regulator DGCA has extended the cap on SpiceJet flights by a little over one month as a matter of "abundant caution", according to an official order on Wednesday.
The Directorate General of Civil Aviation (DGCA) had on July 27 ordered SpiceJet to operate a maximum of 50 per cent of its flights, which were approved in the summer schedule for a period of eight weeks owing to a series of incidents involving its flights.
